Groww Soars 8.5% On Upbeat Brokerage Calls After Q4 Results

Shares of Groww surged as much as 8.55% during the intraday trading today, touching a high of ₹213.25 on the BSE, as brokerages turned bullish on the stock following its robust Q4 FY26 results.

The stock later pared some of the gains and was trading 7.56% higher at ₹211.30 at 11:20 IST, with the company’s market capitalisation at ₹1.32 Lakh Cr (about $14.2 Bn) at the time.

Yesterday, Groww reported a 122% jump in its consolidated profit after tax (PAT) to ₹686.4 Cr in the March quarter (Q4 FY26), up from ₹309.1 Cr a year ago and 25% higher than ₹546.9 Cr in the previous quarter.

Operating revenue increased 88% YoY and 24% QoQ to ₹1,505.4 Cr, taking total income to ₹1,535.5 Cr, including other income of ₹30.2 Cr. Total expenses rose 38% YoY to ₹599.2 Cr.

EBITDA surged 142% YoY and 30% QoQ to ₹938.7 Cr, with PAT margin expanding by 8.3 percentage points YoY to 45%, supported by operating leverage as revenue growth outpaced largely fixed costs.

Its bottom line was partially impacted by losses in newer businesses. Wealthtech platform Fisdom, which powers Groww’s wealth management business W, reported a loss of ₹10.2 Cr during the quarter. The company expects W to turn profitable by FY28. 

It is pertinent to note that Groww acquired Fisdom last year to scale its wealth management offerings.

Besides, Groww’s margin trading facility (MTF) book grew 22% sequentially to ₹2,814.3 Cr, even as the overall MTF market declined 7% during the quarter due to a nearly 17% fall in major indices. This helped Groww increase its MTF market share by nearly 3%.

A major part of Groww’s total income in the quarter came from equity derivatives, which contributed 55%, while stocks accounted for 16%. Commodity derivatives remained stable and made up 4% of total income.

Groww’s retail derivatives premium average daily turnover (ADTO) tripled YoY to ₹16.5K Cr during the quarter, helping its market share in the segment rise to nearly 11%. Its margin trading facility (MTF) business also grew sharply, rising more than 4X to ₹2,814.3 Cr.

The company said the share of revenue from equity derivatives increased slightly during the quarter due to higher user adoption and deeper penetration.

Going forward, the company plans to use the profit generated to further expand its lending and consumer credit businesses.

“Newly launched product segments, namely MTF and commodities saw their share increase meaning- fully driven by higher penetration and user adoption, ” the company said in a statement.

Besides, Groww’s employee expenses grew by 44% YOY to ₹173 Cr in the March quarter. 

Following its results, several brokerages gave positive calls on the company, highlighting its strong revenue growth, improving margins, and operating leverage. They said that growth and profitability of newer businesses like wealth management scale will be key metrics to track. 

Citi, which has a ‘buy’ call on Groww with a target price (TP) of ₹230, said the company benefited from elevated equity market volatility and continued scaling of products like MTF, adding that management remains focused on a product-led approach for long-term leadership. 

UBS, which is ‘neutral’  on the stock with a TP of ₹210, said growth was supported by market share gains and cost discipline, while its wealth platform gives future growth optionality.

JPMorgan said the Q4 print beat expectations across revenue, EBITDA, and earnings, with strong growth across equity derivatives, stocks, commodity derivatives, and MTF. It expects margins to improve further as operating leverage continues across marketing and technology costs.

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